SHAH ALAM, Feb 24 — Selangor is among the best performing states in reducing non-revenue water (NRW), with Johor also recording strong progress, said Energy Transition and Water Transformation Minister Datuk Seri Fadillah Yusof.
“Success in NRW reduction varies by state. Johor and Selangor have performed best due to strong management commitment,” he said during the question and answer session in the Dewan Rakyat today.
On February 13, Pengurusan Air Selangor Sdn Bhd (Air Selangor) said in a statement it has achieved NRW rate of 26.76 per cent in 2025, an improvement from the 27 per cent recorded the previous year. Only Johor has a better NRW level.
In its 2024-2025 Impact Report, the state water utility company said a total of 569 District Metering Zones (DMZs) have been established since 2017 across Selangor, Kuala Lumpur, and Putrajaya to reduce NRW, improve water flow monitoring, and speed up leak detection.
Fadillah, who is also the deputy prime minister, said NRW reduction requires continuous effort and major investment.
He said some state operators struggle financially because current water tariffs do not fully cover operational costs, delaying planned programmes and hindering national targets.
“NRW reduction is under the responsibility of state water operators. The Tariff Setting Mechanism (TSM) which started in August 2025 will help improve cash flow to fund operational and NRW reduction activities.”
Fadillah also highlighted the federal government’s RM2.525 billion National NRW Reduction programme for 2025–2030, which aims to replace critical infrastructure nationwide, upgrade faulty meters for more accurate measurements, and strengthen operator management.
He added that a pro-rata reimbursement system will reward operators for investments in NRW reduction, with operators achieving a 50 per cent cut receiving half their costs back, and those reaching 75 per cent cut getting 75 per cent reimbursed.
He also emphasised the need for collaboration between federal authorities, state operators, and stakeholders to achieve targets without overburdening consumers.
“We must ensure the management of water is improved, and operators are equipped to achieve the set targets. Otherwise, decades-long issues will persist.”
